In the midst of unpredictability, investors often face a variety of challenges. Among them, how to deal with the "second-level decision-making" or even "third-level decision-making" is a headache. However, for long-term value investors, their strategy appears unusually simple and sensible: hold and even be active when it is below value.
First of all, we need to understand that long-term value investors don't care about short-term volatility. They take a long-term view and focus on the intrinsic value of the enterprise. In their opinion, if a business *** this is actually good news. Because it means that they can get more shares in this business at a lower rate. According to this logic, if something is ***, long-term value investors should want more of it in their hands, not less.
However, this does not mean that long-term value investors cannot make mistakes. They also need to make decisions, such as thinking that a certain ticket might be sold and deciding to sell it. But unlike ordinary investors, they don't forget to buy back after they decide to sell. In fact, many people forget the follow-up operation because they are too happy that they have avoided ** after selling.
Charlie Munger once pointed out that this is actually a three-tier decision-making process. First, decide to sell; Then, decide when to buy it back; Finally, also consider how to find a good place to go for the cash on hand. This requires not only wisdom, but also patience and a calm mind.
For those who choose to invest contrarianly, their wisdom is even higher. Selling in the market requires a great deal of judgment and determination. But it's also one of the core strategies of long-term value investors. They understand the volatility of the market and use this to access better investment opportunities.
In summary, both long-term value investors and contrarian investors have shown us the wisdom of investing in different ways. They are not affected by short-term market fluctuations and stick to their beliefs and strategies. In the midst of complex and changeable conditions, this is the secret of true stability and success.